Finance Minister Paula Cox has admitted that the pay to play allegations involving Deputy Premier Ewart Brown have not been investigated by the ongoing review of the administration of public pension funds.

But Premier Alex Scott has so far refused to answer questions on the allegations and it is as yet unclear whether they will be examined by Government at all.

The controversial issue came to light in April when it was alleged that current or prospective money managers of Bermuda's public pension funds dished out $2,500 to have lunch with Dr. Brown in Washington D.C. ? an occasion designed to raise money for the Tourism Minister's personal election campaign.

The guests themselves were invited by Government pension fund consultant Tina Poitevien.

It was later reported that Public Funds Investment Committee (PFIC) Chairman Calvin White invited 47 American money managers to a Progressive Labour Party fundraising golf day in May, 2003.

The subsequent governance review of the administration of the funds was dismissed this week as a "whitewash" by Opposition Leader Grant Gibbons, who pointed out that none of the activities which sparked the probe had been properly investigated.

But Ms Cox has fought back, suggesting yesterday that it was not the Ministry of Finance's responsibility to investigate the behaviour of a Government Minister, but rather to ensure that an effective system is in place to ensure conflicts of interest and unethical activities do not occur.

Minister Cox admitted, however, that the procedures in place to ensure "best practice" in the administration of public pension funds were currently inadequate and in need of "enhancement".

She was at pains to point out additionally, that none of the alleged indiscretions of Dr. Brown or Mr. White are illegal under Bermuda law ? while also praising the PFIC Chairman for his decision to take a leave of absence from his post as the review was being conducted.

A new Code of Conduct governing the behaviour of all those involved with public pension funds in whatever capacity, as well as a system for nipping potential conflicts of interest in the bud before they arise, are two of the review's main recommendations which will be implemented before the end of the year, Ms Cox added.

Asked whether she believed the behaviour of Dr. Brown and Mr. White was inappropriate given their official positions, Ms Cox refused to be drawn ? saying only that as Finance Minister, she did not consider it "appropriate, desirable or wise to make any subjective comment as to what I think or do not think about the alleged activities" while insisting once again that it is not her "remit" to directly investigate what is alleged to have transpired.

had sought comment from Premier Alex Scott at the beginning of the week over what exactly was being done about the alleged behaviour ? only to be told that it was a matter for the Finance Ministry.

However, having been informed by Ms Cox that the review of the administration of public pension funds did not cover the pay to play allegations, this newspaper contacted the Premier again yesterday for a response to the following questions:

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Mr. Scott did not reply by Press time last night, despite a number of further messages requesting comment.

In the meantime, however, Ms Cox sought to further justify the Ministry of Finance's overall handling of the topic.

"My role as the Minister of finance is to assess what should be best practice in the operations of the public funds and to seek to implement and embed a culture of accountability," she said.

"There was room for improvement in our compliance model and the processes and procedures [by which public pension funds are administered. In seeking to allay any concerns as to the manner in which functions had been carried out, action was required. The policy response and the role of the Minister of Finance is to address any actual or perceived deficiencies in the operating management of the public pension funds and to enhance the overarching framework for their management...This I have done.

"A Code of Conduct and conflict of interest guidelines covering service providers, PFIC members and other participants in the governance structure of the public funds will be adopted. The Code of Conduct specifies the no-go areas and will be a very useful addition to the revised documented procedures and it details relating to conflicts of interest and disclosure. The next phase of the governance review will look at best practice re other jurisdictions and their legislation and make recommendations as to any gaps which need to be filled legislatively."